prolly nothing... https://www.cnbc.com/2022/03/21/bit...ces-otc-crypto-trade-with-galaxy-digital.html Goldman Sachs, Galaxy Digital announce milestone over-the-counter crypto trade PUBLISHED MON, MAR 21 20227:45 AM EDTUPDATED 2 HOURS AGO Hugh Son@HUGH_SON Goldman is the first major U.S. bank to trade crypto over the counter, CNBC was first to report. The bank traded a bitcoin-linked instrument called a non-deliverable option with crypto merchant bank Galaxy Digital, the firms said. The move is seen as a notable step in the development of crypto markets for institutional investors. Compared with the exchange-based CME Group bitcoin products Goldman began trading last year, the bank is taking on greater risk by acting as a principal in the transactions, according to the firms. “This trade represents the first step that banks have taken to offer direct, customizable exposures to the crypto market on behalf of their clients,” said Galaxy co-President Damien Vanderwilt. A Goldman Sachs Group Inc. logo hangs on the floor of the New York Stock Exchange in New York, U.S., on Wednesday, May 19, 2010. Daniel Acker | Bloomberg | Getty Images Goldman Sachs is pushing further into the nascent market for derivatives tied to digital assets. The firm is the first major U.S. bank to trade crypto over the counter, CNBC was first to report. Goldman traded a bitcoin-linked instrument called a non-deliverable option with crypto merchant bank Galaxy Digital, the two firms said Monday. The move is seen as a notable step in the development of crypto markets for institutional investors, in part because of the nature of OTC trades. Compared with the exchange-based CME Group bitcoin products Goldman began trading last year, the bank is taking on greater risk by acting as a principal in the transactions, according to the firms. That Goldman, a top player in global markets for traditional assets, is involved is a signal of the increased maturity of the asset class for institutional players such as hedge funds, according to Galaxy co-President Damien Vanderwilt. “This trade represents the first step that banks have taken to offer direct, customizable exposures to the crypto market on behalf of their clients,” Vanderwilt said in an interview. The options trades are “much more systematically relevant to markets compared to cleared futures or other exchange-based products,” Vanderwilt said. “At a high level, that’s because of the implications of the risk banks are taking on; they’re implying their trust in crypto’s maturity to date.” Hedge funds have been seeking derivative exposure to bitcoin, either to make wagers on its price without directly owning it, or to hedge existing exposure to it, the firms said. The market for these instruments is mostly controlled by crypto-native firms including Galaxy, Genesis and GSR Markets. “We are pleased to have executed our first cash-settled cryptocurrency options trade with Galaxy,” Max Minton, Goldman’s Asia Pacific head of digital assets, said in a statement. “This is an important development in our digital assets capabilities and for the broader evolution of the asset class.” The bank has seen high demand for options tied to digital assets, Goldman’s global head of crypto trading Andrei Kazantsev said in December. “The next big step that we are envisioning is the development of options markets,” he said.
Soon bitcoin bugs will be able to moan like gold bugs about the evil big banks artificially supressing the price.
We're already doing that!! Bitcoin futures and ETF futures-based are being used now to short Bitcoin physical Bitcoins = real Bitcoins on the blockchain However, gold market is easily manipulated by the central banks with their JPM proxy player. No one really knows how much physical gold they claim are in their warehouses Bitcoin is different, though. Bitcoin is easily verifiable on the blockchain. Bitcoin is verifiably scarce You'll see as more and more demand for physical Bitcoins hit the markets as more nation states like Malaysia or Argentina or Guatemala start adopting Bitcoin as legal tender Or when Terra Luna starts buying $10 B in Bitcoin for reserves-backing their UST stablecoins Or when Goldman Sachs clients and Morgan Stanley and JP Morgan and Fidelity UHNW and Institutional clients start demanding proof of Bitcoins on custodial accounts These people will not accept "fake" Bitcoins like futures or paper claims Bitcoins verifiable on the blockchain. Nothing else is acceptable Few understand this...
I'm very looking forward to there being an actual truth to something in the world. I often wonder if exchanges have enough BTC in their inventory and what would happen if a price shock hits and they are forced to buy higher and higher in order to meet all the demands of people trying to take their coins of the exchange. Although it sucks that the big players are manipulating price, I really do think that eventually, nobody will trust anyone else with their coins, and this sort of stuff will end. I'm also reminded of the whole GME fiasco where it was discovered that there was something like 130% shares of the available float that was short. This is not much different than paper contracts for precious metals being multiples of how much physical stuff there is in the whole world. But the PM game cannot be beat, and although I believe the gold bugs that the current price probably doesn't reflect the actual value or demand, there will be no reconciliation, unlike with bitcoin where the day will actually come that owning it outright in your own hardware wallet will be the only thing that matters.
Anthony Scaramucci had an interview on CNBC earlier today but it's not available, yet, but basically, the way to combat this price manipulation with the futures market is to have bigger distribution of ownership Glassnode estimates 250M bitcoin owners in the world, that is absolutely nothing in the context of 3 billion users of Facebook or any other platform When we hit the 1 Billion global owners of Bitcoin, I will be very much surprised if the price is less than $500K/btc Until then, we wait and watch the price fluctuations. Probably by 2025, the above will come to fruition As far as GME fiasco, it's because the brokers don't really own the stocks, they are only intermediaries Coinbase, Binance, Kraken and Gemini and all the crypto exchanges have no incentives whatsoever to claim that they have more cryptos than they actually hold These crypto exchanges are all very profitable!! To risk jail time for committing fraud does not make sense The Bitcoins going to UST reserves and wrapped BTC and defi are much better in terms of transparencies as crypto people demand blockchain verfication. We always distrust centralized entities like Coinbase and others
It will work out differently I think. With big players going BTC there is no longer need for Tether, Tether going lower = BTC going lower.
No, there is a big need for Tether. And if Tether is done away with then another stablecoin will take it's place